Marketing ControlMarketing Control

Management is all aboutManagement is all about

• Planning

• Executing

• Control

Marketing OrganisationMarketing Organisation

• Functional

• Geographic

• Product/Brand management

• Market Management

• Matrix

Any strategy is as good as its Any strategy is as good as its implementationimplementation

Marketing ImplementationMarketing Implementation

is the process that converts plans into assignments, which after successful

achievement accomplishes the plan’s stated objectives

Marketing ControlMarketing Control

• Budget

• Profitability

• Efficiency (Productivity)

• Strategic

Budget ControlBudget Control

• Measurement of results against monthly/quarterly budgets (goals)

• Reasons for deviations (variances)

• Remedial steps to be taken to close the gaps

• between performance and goals

• Review performance in the next month/quarter and assess results

Benchmarks for EfficiencyBenchmarks for Efficiency

• against last year• against budget• against targets

• % growths• % variances• % market share

Marketing ExpenseMarketing Expense

• Sales Force• Advertising• Sales Promotion• Market Research

• Sales Administration• Public Relations• Direct Marketing

Financial AnalysisFinancial Analysis

• RONW - Net Profits/Net Worth profit margin *asset turnover*financial leverage

• Increase margins by increase in sales or reduction in costs or both

• Increase asset turnover by increasing sales or reducing the assets (inventories, debtors) against a given level of sales

Market based scorecard analysisMarket based scorecard analysis

• Customer Analysis

• Stakeholder Analysis

Profitability ControlProfitability Control

• 80 : 20 rule

• Product rationalisation

• Customer rationalisation

• Costing Analysis

Efficiency ControlEfficiency Control

• Sales force efficiency

• Advertising efficiency

• Sales promotion efficiency

• Distribution efficiency

Sales force EfficiencySales force Efficiency

• No. of calls per salesperson per day

• Average revenue per sales call

• Average cost per call

• Average call time per call

• No. of new customers per period

• Sales force cost per unit sales

Advertising EfficiencyAdvertising Efficiency

• CPT

• Before and after measure of attitude towards the product

• No. of enquiries per ad

• Cost per enquiry

Sales Promotion EfficiencySales Promotion Efficiency

• % sales sold on ‘promotion’

• Display cost per sales rupee

• % coupons redeemed

• No. of enquiries resulting from a demonstration

Distribution EfficiencyDistribution Efficiency

• Time taken to execute orders

• % order executed

• service levels

Other Control MeasuresOther Control Measures

• Marketing Effectiveness Review - customer philosophy, integrated marketing organization,

adequate marketing information, strategic orientation and operational efficiency

• Marketing Audit - comprehensive , systematic, independent and periodic

review of a company’s business environment, objectives, strategies and activities with an idea to identify areas of weaknesses and recommend a plan of action to improve on such areas.